Pound Slips Below 1.3650 as Traders Brace for US PCE Inflation Data

BitcoinWorld Pound Slips Below 1.3650 as Traders Brace for US PCE Inflation Data The British pound traded slightly lower against the US dollar on Thursday, hovering below the 1.3650 mark, as investors awaited the release of the US Personal Consumption Expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge—due later in the day.

Why the PCE Report Matters for GBP/USD The PCE price index is a critical data point for the Federal Reserve’s monetary policy decisions. A hotter-than-expected reading could reinforce the case for a slower pace of rate cuts, supporting the US dollar and pressuring GBP/USD.

Conversely, a cooler print might fuel expectations for earlier easing, potentially lifting the pound. As of Thursday, the market is pricing in a roughly 60% chance of a 25-basis-point Fed rate cut at the next meeting, according to CME FedWatch.

The PCE data will likely influence these odds, making the release a key short-term driver for the currency pair.